Lloyds Posts Billions in Profits Following Higher Interest Rates

Lloyds reported strong profits while criticizing a new UK budget tax hike on banks as harmful to economic growth.

Lloyds Banking Group reported a sharp rise in earnings boosted by elevated interest rates across the banking sector. The profit announcement arrived immediately after the UK government introduced higher tax levies on major lenders in its latest budget. Senior executives at the financial institution cautioned that increased taxation on banks could hinder broader economic growth.

• The tax policyChancellor John Healey announced an additional 3% corporation tax surcharge on banks starting in January, bringing the total surcharge rate to 6%.
• The bank's reactionLloyds leadership warned that linking lender taxation to energy bill relief is unhelpful for economic expansion and urged that the tax remain temporary until March 2028.
• Financial driverCentral bank interest rate increases continued to boost net interest margins and profitability for UK lenders.

What's new · 3h agoLloyds executives publicly criticized Chancellor John Healey's bank tax increase, warning it threatens economic growth and demanding it end by March 2028.